The Company’s 80-for-1 bonus expanded shares before IPO

The Company completed an 80-for-1 bonus issue on December 5, 2025, issuing 83.21 lakh fully paid equity shares and increasing its paid-up share count from 1.04 lakh to 84.25 lakh before the initial public offering, or IPO. The Company funded the bonus issue by capitalising reserves and surplus rather than receiving cash consideration.

How did The Company’s 80-for-1 bonus issue change the share base?

The Company’s 80-for-1 bonus issue gave shareholders 80 additional equity shares for every one share held, increasing each holding by a factor of 81. The December 5, 2025 allotment added 83,21,440 shares with a face value of Rs 10 each to the 1,04,018 shares outstanding after the January 10, 2013 allotment, resulting in 84,25,458 shares before the IPO.

The bonus allotment represented 98.76% of the 84.25 lakh pre-IPO shares, while the shares outstanding before December 2025 represented 1.24%. Paid-up equity capital increased from Rs 10.4018 lakh, based on 1,04,018 shares, to Rs 8.425458 crore, based on 84,25,458 shares at a face value of Rs 10 each.

A bonus issue is an allotment of additional shares to existing shareholders without a cash subscription from them. The Company reported a nil issue price and identified capitalisation of reserves and surplus as the consideration for the December 2025 allotment. The Company also stated that it had not revalued assets since incorporation and had not capitalised revaluation reserves for any equity-share issue, including the bonus issue.

Who received The Company’s December 2025 bonus shares?

The Company allocated the largest portions of the December 2025 bonus issue to promoter and promoter-group holders. Kedar Mayank Choksi received 46.05 lakh bonus shares and Late Mr. Mayank Bhikhabhai Choksi received 28.51 lakh shares, together receiving 74.56 lakh shares, or 89.61% of the 83.21 lakh bonus shares.

The other major allocations went to Mayank Bhikhabhai Choksi HUF, which received 6.60 lakh shares, and Kedar Mayank Choksi HUF, which received 1.04 lakh shares. Heta Kedar Choksi received 83,200 bonus shares. The prospectus places both HUF holders in the promoter group.

Dhruv Kedar Choksi and Sara Kedar Choksi each received 8,000 bonus shares, while Nitinbhai Shah and Sudhaben Shah each received 800 shares. The nine disclosed allocations total 83.21 lakh shares and follow the 80-for-1 ratio, which preserved ownership percentages at the time of the bonus issue because all shareholders received shares in proportion to their existing holdings.

What did the bonus issue mean for ownership before and after the IPO?

The Company had eight shareholders at the prospectus filing date, with promoters and the promoter group holding all 84,25,458 pre-IPO shares. Kedar Mayank Choksi held 75,49,848 shares, or 89.61% of pre-issue paid-up capital, after 28,87,002 shares held by Late Mr. Mayank Bhikhabhai Choksi were transmitted to him on August 21, 2026.

The transmission followed the death of Late Mr. Mayank Bhikhabhai Choksi, identified as a promoter and whole-time director, on August 12, 2026. The transmission did not create shares, so the pre-issue share base remained 84,25,458 shares. Promoters and the promoter group therefore continued to hold 100.00% of pre-issue capital, although ownership of the transmitted holding changed.

The fresh issue would add 35,44,000 equity shares and increase paid-up share capital to 1,19,69,458 shares. Promoter and promoter-group holdings would remain 84,25,458 shares, but their percentage would decline to 70.39% from 100.00% because the IPO would issue new shares. Kedar Mayank Choksi’s holding would decline to 63.08% of post-issue capital from 89.61% before the issue.

What restrictions and further capital plans apply after The Company’s bonus issue?

The Company stated that it would make no further capital issue, including a bonus issue, preferential allotment or rights issue, from the prospectus date until listing or the unblocking of application money if the issue fails. The Company also does not intend to split or consolidate the denomination of its Rs 10 equity shares for six months from the opening of the issue.

The restriction does not exclude every possible future equity issue. After listing, the board may issue equity shares or securities convertible into equity shares to finance an acquisition, merger, joint venture, regulatory compliance, a scheme of arrangement or another purpose it considers to be in The Company’s interest. This is a conditional post-listing option, not a disclosed commitment to undertake a transaction.

Lock-in provisions apply to the pre-IPO holdings under the Securities and Exchange Board of India Issue of Capital and Disclosure Requirements Regulations, 2018. The Company stated that promoter holdings equal to 20.00% of post-issue capital would be locked in for three years from IPO allotment. It also disclosed lock-ins of 30,53,635 pre-issue promoter shares for one year and 30,53,635 shares for two years, while 7,91,370 pre-issue shares held by persons other than promoters would be locked in for one year.

Conclusion

The Company’s pre-IPO equity base was reshaped mainly through a reserves-funded corporate action rather than new cash share subscriptions. The December 2025 bonus issue created 83.21 lakh of the 84.25 lakh shares outstanding before the IPO, and Kedar Mayank Choksi and Late Mr. Mayank Bhikhabhai Choksi received 89.61% of the bonus shares.

The disclosed fresh issue would be the next capital-structure change, increasing the share count to 1,19,69,458 and reducing promoter and promoter-group ownership to 70.39%. The further item to watch is whether the board uses its stated post-listing authority to issue equity or convertible securities for an acquisition, merger, joint venture, regulatory compliance or a scheme of arrangement.